Glanbia agrees to buy protein bar manufacturer thinkThin for $217m

Glanbia has agreed to purchase US-based protein bar manufacturer thinkThin for $217m in cash.

thinkThin offers a range of protein enriched bars aimed at lifestyle consumers looking for wholesome, convenient and tasty snacks. The company distributes its products in the food, natural and mass retail channels in the US.

For the year leading up to September 2015, the firm had seen net sales of $84m, with a compound average growth rate of 31% in the past three years.

Glanbia Group managing director Siobhán Talbot said: "I am very pleased to announce that we have reached an agreement to acquire thinkThin. As a premium lifestyle nutrition product with very strong brand equity, thinkThin represents an excellent strategic addition to our portfolio of market-leading performance nutrition brands.

"The transaction is firmly aligned with our overall growth ambitions and positions us well in the fast growing nutrition bar category, as well as being value-enhancing for our shareholders."

The acquisition of thinkThin will bolster the presence of Glanbia Performance Nutrition (GPN) in the sector, and offer exposure to the growing nutrition bar segment, which is worth $2.8bn in the US retail market.

thinkThin offers a platform for GPN to enter the ‘better for you’ snack products category, and increase its brand range in existing channels.

The transaction is expected to be complete before the end of 2015, and is subject to customary completion conditions and regulatory approvals.

The deal will be marginally earnings accretive in 2016. Glanbia will fund the deal through debt from existing facilities.

Founded in 1999 by Lizanne Falsetto, thinkThin is based in Los Angeles, California. In December 2011, TSG Consumer Partners, an investor in the branded consumer sector, bought a majority stake in thinkThin.